Government Pumping Money into the Economy is not the Solution for our Economic Problems

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63 comments Page 2 of 7.

Tappu said:   1 decade ago
Hello, friends about the topic I would like to say that pumping money in the economy can be a solution to the economy but for that we need proper infrastructure and arrangement. And we have neither of them. Our govt is a corrupt govt and our lack of infrastructure make all the money to move to the politician's pocket. So, I suggest instead of pumping money our govt should try to increase our export by increasing quality and quantity of our agriculture.

For that reason good quality seeds should be supplied to farmers, farmers should be made educated so that they can learn the new scientific techniques of farming. We should industrialize our country, because to be a developed country we have to be developed in both the sector and that will reduce import and at the same time increase lot of job opportunities that will reduce the need for money pumping in the society.

In nutshell I want to say instead of pumping money to our economy directly through different schemes we should try to utilize the money for the for industrialization and agriculture development.
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Pawan said:   1 decade ago
Yes my dear friend said correctly pumping money in economic is not solution there are various factor which affects our economy like.

1. Export & Import-India is main importer of crude oil and other various commodities and export is very less so we should think in export perspective of commodity. Government should deduce their subsidy on exporting to growing export.

2. Debt Market-every individual try to deposit their money in bank at risk free rate there only 10 % of population deposits their money in debt instrument if government should attract investor in debt market so our economy can boost.

3. To provide special facility for establish new entrepreneur's in country because its supports production and provide employment and deduct the import.

4. We should think in terms of education in village which can help to grow our economy.

5. Our country is mainly depend on agriculture so we should provide new technology to the farmers and provide subsidy in fertilizers and pesticides.

These factor can grow our economy if we would think on that side.
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Samrat said:   1 decade ago
As per my knowledge Indian economy lies in its agriculture and education. India is not an industrial country right? so whenever we are talking about economical problems we must be aware of the fact that the problem lies in educational and agricultural fields.

Now, pumping money can not solve the problem if the Govt is pumping in other sectors like health, urbanisation or industry, but it will definitely be helping if the govt invests in agricultural and educational fields. I am not saying that all of the money should be invested in these two fields, obviously industry needs an investment, but in a country where 40% people are daily wage earners industry and urbanisation has not much to do to solve economic problems.

Yes economical problem is the other name of poverty and money can solve the problem but it can be solved only when the Govt invests it in proper sectors, without govt investment nothing is gonna happen because Indian public is not going to invest on their own like a charity right? So its only the govt money who can solve the problem.
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Kuntala dutta said:   1 decade ago
Pumping of Money in Economy means contribution or extra money and it is not the Solution for our Economic Problems. Because most part of the money goes to the politicians swish bank or into their pocket. In one article said if we will distribute the money of swish bank's of politician then every Indian will get 1 lakh. Recently one annashree yojana has come for poor people but what happened all money has gone to politicians bank. So instead of this way govt should think another way. They should provide some good scheme to the farmer since our 25% GDP is come from farmer only. They should make less tax pay scheme for the poor people.

Another solution is that the government should increase its export by increasing the production of the product to be export and should decrease the import by producing those products in the India.

So, according to my thinking, pumping of the money is not the only solution to the problems and instead of this, government should think of the other solutions.
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Neeraj said:   8 years ago
Hi Guys.

As we all know that India is an agricultural country where maximum people depend on its irrigation so it is clear that how many earning resources are available for the people for their livelihood where there they are not able to even to grow their crops properly because of poor technology provided by the government. Farmers are not able to utilize government's utilities because of poor management which is being taken place under corruption we can say that government is giving money buy not in proper manners that are why problems are not getting short out pumping the money. And the same thing is happening with the education sector which is also under corruption so because of different-2 kinds of corruptions money is not able to utilize properly in all the sectors.

So over all, I'd say that only giving money is not enough to develop the country there is need of proper management so that money can be utilized properly for the nation.

Thanks.
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Prakasam said:   1 decade ago
Hai friends.

Our economy occur so many problems, but our economy have more current account deficit so our finance minister take more action to reduce the current account deficit so India raise to our cash inflow in foreign direct investment so this type of money use to pump our economy to lend more amount to all the sectors through the bank loan this is one of the best way but FDI only is not solution, otherwise government take quantitative easing that means print the new currency also undervalue the Indian currency already the value is going undervalue so don't take quantitative easing.

In this situation all the production is going down so pump money is not only solution also government and reserve bank of India take action to reduce the monetary policy that means reduce the interest rate this is good solution to reduce our economy problem. Also India have more corruption in all the sectors so reduce the corruption is good solution.
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Ms khan said:   1 decade ago
Yes definately I agree that pumping money in economy doesn't mean grow of economy. We all know that 70% of real India resides in villages. We always talk about the India which is signing in cities and we never give a thought to India which resides in villages. The basic infrastructure such as roads, water, hygieine, education, electiricity, is missing in real India. The foreign comnpanies which are investing in our country want to have a safer destination in cities thus the cities are signing. Because government care musch about the FDI rather than thinking about the common people. Unless or until the common people gains on economical front there will no real economical growth. The govt should create infrastructure in villages and towns so the foreign countries don't hesitiate in investing in town and villages. When the dollars will reach to the villages and towns and India that will be the real Indian economic growth.
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Himanshu singh said:   4 years ago
Hello friends,

As we all know that, India is an agricultural country in which 70% population of this country directly depends on it. And there is no proper solution and management for sustainable agriculture policies and because of lack of technology and proper management farmers are not able to lift up themselves. And just because of pumping money the govt thinks that we help farmers or people then they are wrong. Because as we all know that Indian govt is corrupted it also adds in the pockets of our highly respectable ministers. Govt should take strict actions to combat corruption in order to improve the current situation of our country where the poor are getting poorer, and riches are getting richer. So, pumping money is not the solution. Investment of money in the right way according to that need and keep proper management of that money is more reliable rather than pumping money into the economy.

Thank you.
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Kavitha said:   1 decade ago
Yes i agree with the statement. In most of the cases the money suplied by the government is misused by those who sit in authorities for their personal needs or they are not utilised properly in the areas of public interest. For instance how many roads are remaining unrepaired? adequate health care is not still extended to the poor parts of the country. What is actually happening..? the illiterate are mishandled.This is all the problem of governing bodies not all are targeted but most of them, who uses the public money to satisfy their unsatiable greed.

Indian economy is mainly agro based, so famers shoul be encouraged, by providing money and equipping them with the latest technologies, for this education has great role. Proper utilisation of land and wealth along with the involvement of skills and newr ideas if put togeter will help the nation's economy.., so simply pumping money is not a solution
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Ranjit basu said:   1 decade ago
According to me pumping money will solve the monetary crisis for short term but adopting significant measures would be a better idea in long run.

Pumping money into the economy always had an adverse effect in form of increased taxes which in turn the people need to pay.

More over the Indian govt mostly rely on FII for infrastructural project and other development. So need to concentrate on attracting FDI and FII and prevent erosion of domestic treasury.

Since Indians have a peculiar habit of saving rather than spending the govt should find out new ways and means to attract these small funds towards the development of the society. One such way is mutual funds.

Apart from this if the government really wants to improve the economic condition of the society then it should have a proper focus on the usage of funds and the application of funds in respect to the activity.
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